Axel Springer and 31 other media publishing groups sued Google on Wednesday, Feb. 28 for €2.1 billion in the Netherlands. The figure equates to $2.3 billion, and the lawsuit is the latest to hit Google in recent years. The company has come under scrutiny for its digital advertising business of late, both by media publishers and governments. This time, it isn’t an antitrust filing, but Google’s latest legal challenge is related to its alleged monopolistic practices. The publishers argue that Google’s anticompetitive practices caused them to incur losses. As such, they’re seeking $2.3 billion in damages.
The 32 media outlets are represented by lawyers from Geradin Partners and Stek, who commented on Wednesday’s filing in statements to Reuters. “The media companies involved have incurred losses due to a less competitive market, which is a direct result of Google’s misconduct,” the lawyers said. “Without Google’s abuse of its dominant position, the media companies would have received significantly higher revenues from advertising and paid lower fees for ad tech services. Crucially, these funds could have been reinvested into strengthening the European media landscape.”
Google has not publicly commented on this specific litigation. However, the company has consistently denied claims that it grew its ad-tech business illegally. In response to a U.S. Department of Justice antitrust lawsuit that also concerns its advertising business, Google said the government’s case reflected “a flawed argument.” Google has similarly denied antitrust claims throughout Europe in the past. It has also tried to appease regulators in some aspects. For example, by agreeing to pay millions in annual fees to German publishers.
Why the $2.3 billion suit was filed in the Netherlands
Media publishing groups and brands participating in the lawsuit notably included Axel Springer and Schibsted. Overall, groups from 13 different countries formed a coalition in the suit: Austria, Belgium, Bulgaria, the Czech Republic, Denmark, Finland, Hungary, Luxembourg, the Netherlands, Norway, Poland, Spain and Sweden. Some of the other notable European outlets participating are Krone, DPG Media, and Ringier. Though a wide range of publishers are included in the suit, and many countries are represented, the choice of which one to file the lawsuit in was strategic.
The group’s lawyers told Reuters that they filed the litigation in the Netherlands due to the country’s history. It has been a source for antitrust cases in the European Union in the past. There is also precedent in the country. The group also noted that they wanted to avoid filing multiple lawsuits in multiple EU countries. While the $2.3 billion lawsuit has been officially filed against Google, it’ll likely be a while before we reach a resolution.
2024-03-01 15:05:56